D H HAZARETH Vs. GIFT TAX OFFICER

JUDGEMENT

(1.) IN these writ Petitions , the validity of the Gift-tax Act (Central Act No. 18 of that 1958) to be referred to as the "Act" hereinafter, in so far as it purports to reach gifts of "land a and buildings" is challenged. The gifts with which are concerned in these petitions are gifts of agricultural lands.

(2.) IN Writ Petition No. 1077/59, though the gift deed in question (dated 21-1-1958) includes properties other than agricultural lands, the tax levied in respect of non-agricultural lands is not challenged. The total tax levied on the petitioner by the Second Gift-tax Officer. Mangalore, as per his proceedings No. 83-/58-59 dated 25-11-1959 in Rs. 35,612/- Out of this sum a sum of Rs. 34,036/18 was levied as gift-tax in respect of a gift of a coffee plantation. It is this levy which is the subject-matter of challenge in that petition.

(3.) IT is urged on behalf off the petitioner that the "Act" in so far as it purports to affect gifts of "lands and buildings" is taken vires of the powers f the Parliament. According to the petitioners, the power is conferred ion the State Legislative as per share as read with Entry 49 of List 11. But, according to the Revenue, it is an unallocated field and therefore, it comes within Entry 97 of the List 1. We have title judge between these rival contention. Before doing so, it is desirable title recapitulate certain well accepted canons of constructions in the smaller of interpreting the scope if an Entry in any of the Lists.